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Reddy Ice to be acquired; cuts 2007 outlook
(Reuters) - Reddy Ice Holdings Inc. (FRZ.N), a maker of packaged ice, said it agreed to be acquired by certain funds managed by hedge fund GSO Capital Partners LP in a deal with a total value of about $1.1 billion.
The purchase price of $31.25 a share in cash represents a premium of about 9.6 percent over the stock's Friday close of $28.52, Reddy Ice said in a statement.
The transaction is expected to close in the fourth quarter of 2007.
Dallas, Texas-based Reddy Ice also cut its 2007 outlook, citing adverse weather during the second quarter in several of its major markets, including Texas and Oklahoma.
The company now expects earnings of $16.3 million to $20.4 million, or 74 cents to 93 cents a share, on revenue of $350 million to $360 million for the year.
In February, Reddy Ice had forecast earnings of about $19.2 million to $23.4 million, or 87 cents to $1.06 a share, on revenue of $360 million to $370 million.
For 2007, analysts on average expect earnings of 94 cents a share, excluding exceptional items, on revenue of $364.6 million, according to Reuters Estimates.
(Reporting by John Tilak in Bangalore)
